Legal Definitions - common-bond doctrine

The common-bond doctrine is a rule that requires individuals who want to become members of a credit union to share a common connection, such as working for the same company or living in the same community. This connection must be something other than just a desire to join the credit union.

For example, if a credit union is formed for employees of a particular company, only those employees would be eligible to join. Similarly, if a credit union is formed for residents of a particular neighborhood, only those residents would be eligible to join.

The common-bond doctrine helps credit unions maintain a sense of community and shared purpose among their members. By requiring members to have a common connection, credit unions can better serve the needs of their members and provide more personalized financial services.